Looking to buy within 1.3612-1.3603 | 06 October 2021

Technical observation

Yesterday, I predicted a rally to the lower side, however, price did not decline as I had anticipated, instead it rose and broke above a resistance zone it established at 1.3612-1.3603, it then retraced to the just broken zone and is currently trading within it with an increasing bearish bias. If the break above the zone 1.3612-1.3603 was false breakout, there is a possibility of another breakout below the same zone, however, if GBP is sustained above the zone. I expect price to ascend to the resistance level 1.3786. On the 4 hour chart above, I would advise you wait for a second retracement to the supportive zone 1.3612-1.3603 to buy GBP with your take profit at 1.3786.

Trade recommendation

Wait for a second retracement to the zone 1.3612-1.3603 to buy GBP.